| From UK-Analyst.com: Monday 15th July 2013 IMPORTANT: Are your UK-Analyst emails being delayed? Add UK-Analyst@news.t1ps.com to your safe senders/contact list to help resolve the problem The Markets Over in Asia, growth in the Chinese economy slowed to 7.5% over the second quarter of 2013 as overseas demand for Chinese goods failed to keep pace. The world's second largest economy, for which growth slowed from 7.7% in the first quarter of the year, has now delivered dwindling growth in 9 of the last 10 quarters. Although 7.5% year-on-year growth would be lauded in most global economies, it represents the slowest pace of economic growth for 23 years in China. The new data was largely in line with analyst expectations and follows a string of forecast cuts following a series of weak data releases and government warnings on economic growth. Liu Li-Gang, head of Greater China economics at Australia & New Zealand Banking Group, warned "The new government under Mr. Li should be seriously worried about the prospect as to whether they can meet the growth target." According to a new survey from Ernst and Young, the UK economy is destined to gain further momentum next year with business investment and exports predicted to be the main catalysts for improvement. According to Ernst and Young's report, UK economic growth will hit 1.1% this year and 2.2% next year despite the economy's reliance on consumer spending and the housing recovery. The report went on to say that the government may have overestimated the amount it will need to borrow this year given the positive momentum in the economy. Mark Gregory, Chief Economist at Ernst & Young commented, " Businesses have been in survival mode and have been focused on battening down the hatches rather than investing for the future...With an improving economy we could be at a tipping point when activity might increase rapidly and without warning." In a further piece of positive news for the UK economy, the amount of "serious financial distress" among British businesses fell by 39% during the April-June quarter. According to administrator Begbies Traynor, the number of British businesses experiencing 'critical' financial problems fell to 3,001 in the three months to the end of June from 4,947 in the same period in 2012 as the economic recovery begins to feed through to businesses. The figures are consistent with recent data which has revealed growth in a multitude of different UK sectors. Julie Palmer, a partner at Begbies Traynor said, "With critical distress levels falling at a record pace, this quarter's improvement appears to be the first real sign that the UK economy has turned a corner towards a sustained recovery." ADVERTISEMENT Get free trading guides from Evil Knievil (How to successfully short stocks), Zak Mir (Top AIM market picks for 2013) and other top financial commentators by CLICKING HERE 
At the London close the Dow Jones was up by 16.36 points at 15,480.66 and the Nasdaq inched up by 0.32 points to 3,079.39. In London the FTSE 100 grew by 41.17 points to 6,586.11 and the FTSE 250 was up by 62.61 points to 14,761.99. The FTSE All-Share increased by 18.46 points to 3,487.31, while the FTSE AIM Index slipped by 1.69 points to 713.10.  Broker Notes Canaccord Genuity stuck with its "buy" recommendation on fashion retailer Supergroup (SGP) with a target price of 1,100p. The broker feels that Supergroup offers the prospect of significant growth from international markets and premium growth in domestic markets. Moreover, according to Canaccord's numbers, Supergroup delivers a higher return on assets than its peers and offers better growth dynamics despite trading at a discount to these peers. The shares rose by 46p to 942.5p. Panmure Gordon re-iterated its "sell" stance on recruitment group SThree (STHR) with a target price of 240p. The broker feels that markets remain fragile and does not envisage conditions improving as the current swing towards contracting work reduces overall margins given the differential between Perm fees & Contract rates. Overall, Canaccord believes that the shares are simply too far ahead of where they should be at this stage of the economic cycle but does admit that SThree should benefit when markets do eventually improve. The shares dived by 19.5p to 343p. Cantor Fitzgerald maintained its "buy" recommendation on retailer Mothercare (MTC) with a target price of 200p. The broker remains wary of the "fierce" competition which Mothercare faces and feels that its core product categories have been commoditised by pure on-line players & the food retailers. Furthermore, Canaccord does not agree with Mothercare's decision to downsize its portfolio and believes that its out-of-town locations will leave the brand disadvantaged in a multi-channel world as the brand, according to Canaccord, should be at "the heart of the mother's community". The shares rose by 7p to 482p. 
Blue-Chips Banking group HSBC (HSBA) has revealed that it intends to sell-off its private banking division in Germany to the VP Bank Group, part of Liechtenstein's Verwaltungs-und Privat-Bank Aktiengesellschaft operation. The business in question, HSBC Trinkaus & Burkhardt AG, which employs over 2,500 staff will only see 20 employees transfer over to VP Bank. The move is part of HSBC's current strategic review of its private banking operations as it looks to focus on its most profitable businesses. The shares jumped by 7.5p to 730.6p. Simon Lowth has been appointed as BG Group's (BG.) CFO and Executive Director and will join up with the natural gas giants after fulfilling his final commitments with AstraZeneca. At present, Simon is currently the CFO of AstraZeneca and an Executive Director on its Board after joining the company back in 2007. Simon will replace Den Jones who has been interim CFO and Executive Director at BG Group since February 2013. The shares rose by 7.5p to 1,185p. Mid Caps Oil exploration group Salamander Energy (SMDR) confirmed that its G4/50-4 exploration well in the Gulf of Thailand has been plugged and abandoned. The well, which was drilled to a total depth of 1,889 metres, encountered a 19 metre section of quality P20 Miocene sandstones according to Salamander. However, these sandstones were found to be water-wet following logging and sampling. Moreover, the deeper Permian carbonate target encountered a 34 metre section of Ratburi limestone which was not deemed to be of reservoir quality. The shares were down by 16.7p to 135p. Support services firm Interserve (IRV) has agreed to acquire Topaz Oil and Gas, an oil field maintenance services firm based in the Middle East, for around 30 million pounds. Interserve explained that the acquisition expands its presence in the UAE, a growing market which currently offers $5 billion (3.3 billion pounds) of oil and gas contracts per year. Last week both Westhouse Securities and JP Morgan retained their "add" and "Overweight" stances on Interserve. The shares grew by 4p to 513p. Small Caps Chinese iron ore and property group Prosperity Minerals (PMHL) revealed that it has received a preliminary take over approach from majority shareholder Prosperity International Holdings, in an offer which values the group at around 192 million pounds. Prosperity International holdings is thought to be weighing up a bid of 130p per share - a 63.4% premium to Friday's closing price of 79.5p. The interested party, who already owns 64% of Prosperity Minerals, promised to come back with a firm decision on a potential offer within the next four weeks. The shares shot up by 24.5p to 103.5p. Sound Oil (SOU), the European oil and gas producer, confirmed that its flagship Nervesa appraisal well has now reached total depth at 2,178 metres. Further logging and tests will now be carried out before Sound make any announcements on its next step forwards. The news will be especially welcomed by investors after uncertainty surrounding the project when the drill became stuck in the upper Miocene at a depth of 1,087 metres. The gas field is thought to contain around 21 billion cubic feet of gas and has been valued at $60 million (39.75 million pounds). The shares slid by 1.5p to 10.63p. Website builders SocialGO (SGO), announced that it has raised 200,000 pounds via the placing of shares at 0.05p - an 80% discount to the closing price on its last day of trading last Thursday. The proceeds will be used to fund the group's newly announced strategy of transforming itself into an investing company. SocialGO argues that its change of operations will ultimately deliver greater value for shareholders. It remains to be seen if the market agrees. The shares were down by 0.17p to 0.085p. Recruitment company ReThink Group (RTG), claimed that the first half of 2013 has been a "notable improvement" on last year with the company returning to profitability. The group expects to deliver a 7% increase in full year net fee income driven by a strong performance by its temporary division. ReThink openly admits that the second half of 2012 was particularly challenging for the group but is now adamant that it has truly overcome these difficulties. The shares edged up by 0.13p to 6.63p. Software group Access Intelligence (ACC) announced a 4.2% increase in revenues to 4.2 million pounds for the 6 months ended 31st May while pre-tax losses fell from 216,000 to 30,000 pounds. The group attributed this improvement to increased investment in product innovation, sales and marketing as well as lower sub-contractor costs. Looking ahead, Access Intelligence cites an increasingly regulated market as reason for an increase in demand for its software products. The shares dropped by 0.13p to 2.88p. Travel company Travelzest (TVZ) revealed that its lending bank "continues to be supportive of the proposed strategy of the business" and has agreed to support the company up until the 30th August. This represents the second reprieve for the troubled travel firm as the credit agreement had already been put back from the 30th June to 12th July. The update also revealed that interim results for the first 6 months of the year will be released later this month, in a release which will shed more light on the debt levels of the firm. The shares were down by 0.12p to 1.25p. Â | 
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